Free tax service is staying busy

Pat Mumme (right) helps Ken Conrad with his taxes Thursday at the main branch of the Abilene Public Library. This is the third time Conrad has come to the free service.
[photocredit]Nellie Doneva/Reporter-News[/photocredit]

For at least 10 years, Billie Lewis and her husband, Floyd, have paid to take their taxes to a professional.

"I went to Abilene Bookkeeping last year," Lewis said.

But this year, Lewis said her budget just wouldn't allow for the expense.

"We need every penny we can get," Lewis said at the Hotel Wooten, the site of a free tax preparation service funded by the United Way and the Dodge-Jones Foundation.

Terry Johnson, tax site coordinator, said he's seen about a 10 percent increase in people using the service compared with last year, which he attributes partially to word-of-mouth spreading about the service and partially to economic concerns of his clients. So far, he said, about 600 returns have been prepared at the site.

Nationally, USA Today reported that both H&R Block and Jackson Hewitt have had decreases in tax returns prepared this year.

Thomas Payne, a tax preparer for Abilene Bookkeeping, said he thought the number of clients at his office was about the same as last year, or even up slightly.

He said visiting a professional makes sense in part because of new stimulus programs affecting tax filers.

Changes have been made to the Earned Income Tax Credit, while the government also introduced the Making Work Pay tax credit.

"This year, you can get EIC on three children, when last year you could only get two children," Payne said, referring to the Earned Income Tax Credit.

The Making Work Pay tax credit has made things a bit more stressful for filers accustomed to a big refund, however.

Payne said the stimulus-funded program offers a $400 tax credit to many filers. But in an effort to provide quick relief for workers, the government reduced the amount of taxes withheld from paychecks in 2009.

The end result, for some, is a rebate much less than years past — leading to disappointed clients, Payne said.

"A lot of people took it OK, but there were some people that were really counting on getting a couple of thousand dollars back," Payne said, adding that, "to be honest, I really don't think it was communicated very well at all." Payne said some clients did not realize that the amount of tax withheld from their paychecks had been altered.

Lannett Hickmott, general manager for Liberty Tax Service at 3510 N. First St., also said many filers were surprised to find that their tax refund is smaller than expected.

Hickmott estimated that 85 percent of her customers are "bank customers" — people interested in getting a tax refund promptly.

Overall, "our numbers are dramatically up," said Hickmott, referring to the number of clients.

Payne said it still makes sense to visit a professional to get help when doing taxes.

"If you come in, you get peace of mind to know it's prepared to where you get the maximum refund," Payne said.